US President Donald Trump’s long-pending “Big Beautiful Bill” has cleared a major hurdle after receiving approval from the US House of Representatives on Thursday, following intense debates. The bill had earlier passed the Senate and now awaits Trump’s signature to become law. Experts believe the legislation will have significant implications not only for US politics but also for the global economy.
The bill, officially introduced by Trump, is a sweeping package that includes tax reforms, stricter immigration controls, and spending cuts. While it offers considerable benefits to corporations, high-income groups, and workers earning through tips and overtime, it poses challenges to low-income families, immigrants, and green energy sectors. Critics, including Democrats and social activists, argue that the bill disproportionately benefits the wealthy while hurting working-class Americans. Prominent opposition leader Hakeem Jeffries reportedly spoke against the bill for eight hours during the debate.
Key Features of the ‘Big Beautiful Bill’
Permanent Tax Cuts: Extends tax cuts from the 2017 legislation, providing tax relief to corporations and high-income individuals.
Tax Relief on Tips and Overtime: Eliminates taxes on tip income and exempts up to $12,500 of overtime earnings from taxation.
Increased Child Tax Credit: Raises the credit from $2,000 to $2,200 per child, although low-income families may not fully benefit.
1% Remittance Tax: A new tax of 1% will be imposed on cash transfers from the US to countries like India, starting January 1, 2026. Transfers through banks, debit or credit cards (digital transactions) are exempt.
Stricter Immigration Measures: Expansion of ICE personnel, increased deportation centers, and hikes in visa fees for H-1B, L-1, and asylum applicants.
Cuts to Welfare Programs: Reductions in Medicaid and food stamp programs affecting low-income Americans.
Setback to Green Energy: Tax incentives for renewable energy sectors such as solar and wind have been scaled back.
Impact on NRIs and India
One of the most contentious provisions is the 1% remittance tax. Though initially proposed at 5% and later revised to 1%, it is expected to place a financial burden on Indian families who receive frequent transfers from the US. For example, someone remitting $500 monthly would pay an additional $60 annually under the new tax, which may seem minor but adds up over time, especially for households relying on such income.
India received $135.46 billion in remittances in 2023–24, of which $32 billion came from the US alone. Experts warn that the new tax could lead to a 10–15% decline in remittances, potentially causing a $12–18 billion reduction. This drop may affect India’s foreign exchange reserves and could put downward pressure on the rupee, triggering inflationary trends.
Migration and Investment Concerns
The bill also introduces substantial barriers to immigration, including steeper visa fees and on-the-spot arrest powers for illegal immigrants. This is generating anxiety not just among undocumented individuals but also among international students and professionals.
For Indian NRIs, the bill’s limitations on tax refunds (available only to US citizens) and added levies on large fund transfers may also disrupt real estate investments in India. Property purchases, which often carry emotional and financial value, could now incur additional transaction costs. Many are rushing to complete property deals before the bill takes effect, creating a temporary surge in real estate activity.
Moreover, the bill could impact education and healthcare-related spending by NRIs, increasing documentation and processing burdens even for those transferring small amounts.
The Big Beautiful Bill is poised to alter the financial and migration landscape for NRIs, not just through added tax burdens but also tighter regulations. For Indian families dependent on regular remittances, the bill could reduce monthly income flows, indirectly affecting household economics and, on a larger scale, the Indian economy itself.